The Israelis are juggling hard now. Together with the U.S. they are determined to take on and take down Iran. So all the other manuevers have that primary 'existential' goal in mind:

From The Article:THE day after the Baker-Hamilton report on Iraq was released, Israeli leaders, including Prime Minister Ehud Olmert, rejected the part that urged the United States to refocus on the Israeli-Arab conflict because all Middle East issues were, it said, “inextricably linked.”

Mr. Olmert responded, “The U.S.’s problems in Iraq are entirely independent of the problems between us and the Palestinians.”

“He said to the group, ‘Why am I embarking on this, taking a risk of talking to Arafat?’ ” Mr. Oren recalled. “ ‘The answer is Iran. We have to stabilize our relations with the Arab world in order to deal with the real threat, which is Iran.’ So already then, Israel understood that the peace process with the Palestinians begins with Iran.”